Ecuador is a country that is strategically located in the Andean region of South America. The country’s economic growth is largely attributed to its agriculture, petroleum, and mining industries. To further boost its economy, Ecuador has entered into various trade agreements with different countries and economic regions. Here are some of the major trade agreements that Ecuador has signed:
1. Andean Community
Ecuador is a member of the Andean Community, which is a trade bloc composed of four South American countries: Bolivia, Colombia, Ecuador, and Peru. The bloc was formed in 1969 to promote economic integration and to foster closer political and cultural ties among the member states. As part of the Andean Community, Ecuador enjoys preferential treatment for its exports to the other member countries.
2. United States
Ecuador and the United States have a bilateral trade agreement that was signed in 1991. This agreement provides duty-free access to the US market for many Ecuadorian products, including flowers, seafood, fruits, and vegetables. The agreement has been beneficial for Ecuador, as it has helped to increase its exports to the US.
3. European Union
Ecuador is part of the Andean Community`s trade agreement with the European Union. This agreement is called the Trade Agreement between the European Union and Colombia, Ecuador, and Peru. It was signed in 2012 and entered into force in 2013. The agreement provides duty-free access to the European market for many Ecuadorian products, including cut flowers, bananas, and coffee.
Ecuador and Canada have a bilateral trade agreement that was signed in 1997. The agreement provides duty-free access to the Canadian market for many Ecuadorian products, including flowers, fruits, and vegetables. The agreement has helped to increase Ecuador`s exports to Canada.
Ecuador and China have signed a free trade agreement in 2019, which will provide tariff preferences on various products to boost bilateral trade. The agreement will also seek to increase Chinese investment in Ecuadorian infrastructure projects.
In conclusion, Ecuador`s trade agreements have played a crucial role in boosting its economy. These agreements have provided duty-free access to markets for various Ecuadorian products, thereby increasing its exports and promoting economic growth. The country`s strategic location and its membership in the Andean Community have also helped it to establish trade relationships with different countries and regions.